Bundling Products with Salesforce for Optimal Discounts
- Combine complementary products for better pricing tiers.
- Use Salesforce CPQ to explore available bundling options.
- Identify customer-specific needs for personalized bundles.
- Leverage volume discounts when bundling multiple products.
- Focus on high-demand items to maximize savings.
Why Bundling Makes Sense
With its vast array of products, Salesforce encourages bundling by offering attractive discounts.
Bundling helps customers manage all their business solutions under one umbrella and simplifies integration, reducing overhead in both cost and effort.
Some key reasons to consider bundling include:
- Cost Savings: Bundling can reduce the per-user costs compared to buying licenses separately. For instance, buying Sales Cloud and Service Cloud together may get a better deal than buying them individually.
- Streamlined Integration: Bundled products often work better together, reducing the effort and cost of integration.
- Negotiation Leverage: Salesforce loves bigger deals. By bundling multiple products, you often gain power in negotiations.
- Fewer Licensing Hassles: Managing a single Salesforce contract instead of multiple licenses can make administration more superficial.
How to Bundle Effectively
For the best deals, you must be smart about how you bundle. You can’t just pick any random combination of Salesforce products and expect a discount.
Here’s what you need to consider:
1. Understand Your Needs and Prioritize
Start by clearly outlining what your business needs. Salesforce offers a wide range of products and services, including:
- Sales Cloud: For sales automation.
- Service Cloud: For customer support.
- Marketing Cloud: For marketing campaigns.
- Commerce Cloud: For eCommerce solutions.
- Pardot: For B2B marketing automation.
Key Tips:
- Assess Usage: Understand which products are most critical to your business operations.
- Start with Essentials: If Sales Cloud and Service Cloud are essential, include them in your bundle.
- Add Based on Value: Consider adding products that enhance the core solutions, like Einstein Analytics for better data insights or CPQ (Configure, Price, Quote) if you need automation in your quoting process.
2. Leverage Package Deals and Pre-Bundled Solutions
Salesforce sometimes offers discounted rates on pre-packaged bundles. These packages are usually crafted to fit common use cases and can offer substantial savings.
- Sales and Service Cloud Bundle: One of the most common bundles that caters to companies needing sales and customer support functionalities.
- Platform Plus: This might include Salesforce Platform, Einstein AI, and Integration Services, helping you manage the backend development more effectively.
- Industry-Specific Bundles: Salesforce also offers bundles, such as Financial Services Cloud or Health Cloud, tailored to particular industries, often with discounts included.
Example: For a medium-sized health clinic, the Health Cloud bundle might include features such as patient management, integration with billing systems, and HIPAA compliance capabilities, often at a reduced rate compared to buying each separately.
3. Consider Multi-Year Commitments
Salesforce likes predictability. They’re often willing to drop prices significantly if you commit to a multi-year agreement.
Advantages of Multi-Year Deals:
- Lower Overall Pricing: A longer commitment usually comes with deeper discounts.
- Lock-in Current Rates: This can be a safeguard against future price increases.
- Extra Incentives: Salesforce may offer additional benefits, such as extra support hours or free training modules, to sweeten a multi-year deal.
However, be careful of overcommitting. Ensure you can accurately predict your needs for the next few years. Committing to too many licenses can be costly if you overestimate your growth.
4. Cross-Product Bundling
Look at your organization’s different departments—each might need something different from Salesforce. Bundling for multiple teams can boost your negotiation power.
- Example of Cross-Product Bundling:
- Sales Team: Sales Cloud for CRM.
- Marketing Team: Marketing Cloud and Pardot for campaign management.
- Support Team: Service Cloud for customer support.
By bundling products that serve multiple departments, you’re increasing the value of your contract, which might lead to more significant discounts and better deals.
5. Timing Your Purchase
Salesforce’s fiscal year ends in January, so their sales teams often face pressure to meet targets. You can leverage this by negotiating towards the end of their fiscal quarter or year to maximize your discount.
Timing Tips:
- End of Quarter: Salesforce sales reps are more likely to offer discounts to close deals before quarter-end.
- End of Fiscal Year: The push to meet targets can make the sales team more flexible in offering discounts.
Negotiation Tips for Bundling
The art of negotiation is critical to getting the best deal. Here are some ways to maximize your discount when bundling products:
1. Understand Salesforce’s Sales Tactics
Salesforce has a specific selling style that is heavily target-driven. Knowing how they operate can help you during negotiations.
- Sales Reps Have Targets: They need to close deals by certain times. Leverage this.
- Multi-Year Pressure: They like multi-year deals. If you are committing to it in the long term, push for better pricing.
2. Aim for a Win-Win Situation
Negotiation is not a battle—it’s a collaboration. If you can understand what the Salesforce sales rep needs, you can align your requests to help them achieve their goals while getting what you need.
- Example: If you know they need to close a big deal before the quarter ends, offer to finalize if they can get you a significant discount.
3. Always Compare Quotes
Salesforce pricing can vary, and it’s wise to get multiple quotes. You can request quotes from:
- Different Salesforce Reps: Sometimes, different representatives might offer different prices depending on their territories or targets.
- Resellers: Authorized Salesforce resellers sometimes provide discounts that Salesforce’s internal team may not offer.
4. Use a Professional Negotiator
If your deal is large enough, bringing in a third-party negotiator with Salesforce contracts experience might make sense. They’ll know the pricing structure and common pitfalls and can often achieve discounts that internal teams might not.
5. Offer to Bundle Additional Products Later
Salesforce wants to grow its footprint in your organization. If you aren’t ready to purchase everything right now, hint that you may add more products. This will keep them motivated to offer you a good deal now.
- Example: You may decide to purchase Sales Cloud and Service Cloud immediately, but let them know you plan to add Marketing Cloud next year. This future expansion will make you a more valuable customer.
6. Request Trial Periods
Before bundling additional products, request a trial period. Salesforce often offers a limited-time, no-cost trial for various features. This helps in:
- Testing Compatibility: Ensure new products fit seamlessly with your existing setup.
- Building Confidence: Confidence in a product increases your likelihood of adding it to a bundle, and Salesforce knows this. Use this leverage to negotiate better pricing once the trial is successful.
Bundling Based on Industry-Specific Needs
Salesforce offers industry-specific clouds tailored to meet unique industry needs. This approach can optimize the product experience and effectively increase discounts when bundled.
1. Financial Services Industry
The Financial Services Cloud offers client management, compliance, and wealth management features for finance businesses. To effectively bundle for this industry:
- Sales Cloud + Financial Services Cloud: Helps manage client relationships while ensuring your operations align with industry regulations.
- Einstein Analytics: Adding Einstein Analytics helps analyze client portfolios, providing advisors with AI-powered insights that improve decision-making.
- Shield for Compliance: Include Salesforce Shield if your company has strict compliance requirements. Bundling these with other clouds makes it a robust package for financial institutions.
2. Healthcare Industry
The Health Cloud is tailored to manage patient relationships and regulatory compliance. You can bundle it effectively to maximize both value and savings.
- Health Cloud + Service Cloud: Combine Health Cloud with Service Cloud to improve patient service and enable case management and support.
- Integration with Third-Party Tools: Bundling Salesforce with integration tools like MuleSoft can help connect Salesforce to hospital records, payment systems, and other health services.
3. Retail Industry
For retail businesses, Commerce Cloud is the key product for managing digital storefronts and retail operations.
- Commerce Cloud + Marketing Cloud: Combine Commerce Cloud with Marketing Cloud to enhance customer engagement and drive sales via targeted promotions.
- CPQ for Complex Pricing: If you have a complicated pricing structure for different items or locations, bundling CPQ with Commerce Cloud can help automate pricing and ensure consistency.
4. Manufacturing Industry
Manufacturers have specific requirements for partner management, complex sales, and product tracking.
- Sales Cloud + Manufacturing Cloud: The Manufacturing Cloud helps you manage relationships with distributors and partners while monitoring production and order fulfillment.
- Einstein for Demand Forecasting: Add Einstein Analytics to get insights into product demand, production needs, and inventory management.
Bundling Salesforce Add-Ons
In addition to the main Salesforce products, various add-ons can be bundled to maximize value.
1. Salesforce Shield
For industries that need additional security and compliance, Salesforce Shield provides features like event monitoring, encryption, and field audit trails.
- Bundle Shield with Industry Cloud: Shield is often necessary for the healthcare and finance industries. Bundling it can lower overall costs.
2. Integration with MuleSoft
MuleSoft is Salesforce’s integration tool, which connects various systems. It’s beneficial if your data is spread across different platforms.
- Bundle with Core Salesforce Products: By bundling MuleSoft with Sales Cloud or Service Cloud, you can ensure seamless integration between your CRM and other systems, such as ERP or HR platforms.
3. Tableau CRM
Tableau CRM (formerly Einstein Analytics) provides advanced analytics features.
- Bundle with Sales and Service: Add Tableau CRM to visualize your sales and support data more comprehensively, allowing better decision-making.
- Use Cases: This is especially useful for sales teams that want to track performance metrics visually or customer service teams that wish to monitor service trends.
Considerations When Adding Third-Party Integrations
Salesforce’s popularity is primarily due to its ability to integrate with third-party solutions. However, when bundling Salesforce, remember that third-party integrations can increase or decrease costs.
1. Integration Costs
- Integration Platform: Bundling MuleSoft might add cost but could ultimately save money if you have multiple disparate systems.
- Custom API Development: Consider the development time or additional licenses for building custom APIs.
2. Native Integration vs. Custom Integration
Salesforce has native integration capabilities, but sometimes businesses need custom integrations. During negotiations, consider:
- Bundling Integration Services: If you plan on a custom build, try to get integration hours or support services bundled at a discount.
- Managed Packages: Certain managed packages offered by third-party vendors can be bundled into your Salesforce solution. It’s a good idea to explore whether these solutions meet your needs rather than building from scratch.
Long-Term Considerations for Bundling
1. Licensing Adjustments
Your needs will change over time, so it’s essential to understand how flexible your bundling agreement is.
- Scaling Licenses: Ask if you can adjust the number of licenses yearly without penalty.
- Product Swap: If a product in the bundle no longer meets your needs, can you replace it with something of equal value?
2. ROI Tracking
Once you’ve bundled and implemented your Salesforce products, monitor your ROI (ROI).
- Usage Metrics: Make sure your teams use the products you pay for.
- Periodic Review: Every 6-12 months, review whether the bundle still meets your needs. You may find that another combination would be more effective.
3. Renewal Negotiation
Renewal time is another chance to adjust your bundle. Salesforce may be willing to modify your products or add-ons at this time, especially if:
- You’re Not Satisfied: If a product isn’t delivering value, you can request a different solution.
- You’re Considering Alternatives: Let Salesforce know if you’re considering moving to a competitor. They may provide additional discounts to keep your business.
FAQ: Strategic Negotiation for Salesforce Initial Purchase Discounts
What is the key to negotiating Salesforce discounts?
The key is preparation. Understand your organization’s needs, current licensing options, and how Salesforce structures its pricing. Leverage your knowledge to present a strong case for discounts.
How much of a discount can be expected on an initial Salesforce purchase?
Discounts typically range between 10% and 25%, depending on factors like contract size, product mix, and your negotiation approach. Large enterprise deals may secure higher discounts.
What factors influence Salesforce’s willingness to offer discounts?
Key factors include the size of your organization, the number of licenses, the product suite being purchased, and the length of the contract. Early-stage companies or competitive bids may also impact the discount.
Is timing important when negotiating Salesforce contracts?
Yes, timing can play a significant role. Negotiating at the end of Salesforce’s fiscal quarter or year increases your chances of securing discounts since sales teams aim to meet quotas.
What role does contract length play in negotiation?
Longer contracts often provide more leverage for discounts. For example, committing to a three-year deal may yield better pricing than a one-year agreement.
Should I compare Salesforce with competitors during a negotiation?
Yes, it’s helpful to present competitive quotes. Highlighting alternative options can encourage Salesforce to offer better pricing to secure your business.
Can bundling Salesforce products help secure better discounts?
Bundling products such as Sales Cloud, Service Cloud, and Marketing Cloud often increases your negotiating power. Salesforce is more likely to offer discounts on bundled solutions.
Is it better to work directly with Salesforce or through a reseller?
Both options have pros and cons. Working with Salesforce provides direct communication, while resellers may offer additional discounts or customized solutions. Evaluate both based on your needs.
What are Salesforce’s common negotiation tactics?
Salesforce often emphasizes the value of its solutions rather than competing on price. They might offer a small discount initially but expect further negotiation. Be persistent and articulate your case clearly.
How can I reduce costs without reducing functionality?
Focus on essential features and avoid over-licensing. For example, identify which employees need full licenses versus limited-use licenses. This helps control costs while meeting business needs.
Are trial periods negotiable?
Yes, trial periods can often be extended during negotiation, especially for enterprise-level agreements. This allows you to test products before committing fully.
What role does contract renewal play in initial negotiations?
The terms of your initial purchase can impact future renewal negotiations. Securing a favorable agreement upfront sets a precedent for better renewal terms.
How can I handle Salesforce’s price increases?
Negotiate caps on annual price increases during the initial agreement. Specify a percentage limit on price hikes to avoid unexpected costs in the future.
Are professional services negotiable in the contract?
Yes, professional services like implementation support and training can often be negotiated. Request discounts or complimentary hours as part of your agreement.
How do I know if I’ve secured a good deal?
Research industry benchmarks, consult experts if necessary, and compare your agreement with others in similar industries or organizations. A good deal balances fair pricing with your organization’s needs.
